What Bangladesh Bank intends to do with banking sector crisis?
After the July-August Revolutions, last seven months wasn't very pleasant experience for the banking and business sector. Due to huge credit loss, NPL (nonperforming loans), liquidity crisis - the clients lost their trust on banking sector. And at the same time inflation has been the biggest issue for this country for a long time. Awami League government is gone for seven months, but still there are some political instabilities and uncertainties, that are preventing investments. Since there is less investments and business projects, unemployment is going to be a big issue. The first step we've seen that Bangladesh Bank increased the Policy Rate. This is the most common step for Central Bank to increase the interest rate to control inflation by encouraging more deposits and investments. The root cause of inflation in Bangladesh was not necessary the money supply - business syndicate, corruption and import costs always played a vital role for price hikes. Rise of Policy Rate is o...